Panama’s economy will grow between 8 and 12 percent this year depending on which forecast you accept. The International Monetary Fund (IMF) updated its growth projections for the world on Tuesday and in the case of Panama it predicts 12%; the World Bank projects 9.9%; Fitch Ratings agency expects 9.2% growth; while Moody's and the Panama Chamber of Commerce, Industries and A agriculture are the least optimistic at 8%.
Part of the expected growth is explained by the fact of starting from a low base since the gross domestic product (GDP) contracted in 2020 due to the pandemic and restrictions on the economy.
The economist Felipe Argote said: “we fell so deep that the recovery is relatively simple. If we do not grow double digits, it is because nothing is done ”.
The Chamber of Commerce said yesterday that in its estimate it considers that activities such as the Panama Canal, ports, the export of copper ore, and gold among others, will lead to a rapid recovery.
Like the boy who cried wolf, conservatives have been predicting hyper-inflation of the dollar for decades. They only back off when a Republican big spender is in the White House.
So 10% growth is celebrated after a 90% crash? How is exporting gold from Panama a thing to celebrate? Panama is pegged to the dollar and the dollar will be hyperinflated by the hard Socialists in DC digitally creating trillions monthly. Panama should open a repository and keep mined gold in country. Use it to back stop a now worthless Balboa. Being a leftist country with the Cortizo PRD regime firmly implanted, Panama will just squander the gold resources. When the dollar hyperinflates, canal shipping will fall dramatically because the drug dependent, lazy, obese, tatted Americans won't have any purchasing power, and neither will Panama. Austrian economics will be in vogue sooner than most think.